Don’t buy call for mortgage stress test to be relaxed

Mortgage stress test may get tweak before 2023, May 13

The rationale for the mortgage stress test is as relevant today as it was when it was instituted: The purpose was to make sure that homebuyers did not take on more debt than they could afford if borrowing costs should increase, not to cool the market as mortgage brokers and real estate agents claim.

The call for a change has everything to do with increasing home sales so they can maintain their incomes in a slowing real estate market.

Less stringent requirements means more homebuyers which means more commissions.

Greg Sheehan, Mississauga